I still have reservations
Fair enough Delboy, I can see your desperation in wanting to buy in this current crazy market – join the club! However, by getting your parents to act as guarantor, you are in effect, creating a “lending norm” – I am finding that more & more banks are refusing loans until your parents can act as guarantors for a lump sum of e.g. €50,000…. Frankly, I don’t want to have to ask my parents to act as guarantors to satisfy greedy mortgage lenders. But if you subscribe to this norm then all lenders will expect everyone to do the same and it’s not very fair on regular savers like myself who can’t keep up with inflating house prices yet wouldn’t expect their parents to act as guarantors.
Now, I like your self wud be wise enough to have ample insurance coverage against redundancy & sickness & death (via mortgage payment protection & mortgage protection) & like wise I am in a very stable job with definite foreseeable payrises. However, at the end of the day, if something god forbid does wrong or there is a default with insurance etc… the banks aint gonna care about you or your parents situation because they have the lovely security of a great big house(s) waiting for them.
Your case parallels that new scheme released this week which allows parents to re-mortgage their homes to provide their kids with a lump sum – it’s just so frustrating when people don’t realise that they are maintaining these inflated house prices by having their parents either acting as guarantors or re-mortgaging to give a deposit lump sum…. You may be only paying a little more than your previous rent but at what cost to your parents well-being?
I just hope you have started long term savings now for your (future) kids so that you won’t have to worry about decreasing your security in your retirement!